Nowadays, data and information are commonly regarded as an organisation’s most important asset. This also makes it a prime target for cyber breaches, and no sector is immune from this threat. Law firms are under immense pressure, as they must defend their own internal data as well as sensitive client data including financial statements and criminal records. This makes them a prime target for cybercriminals looking to exploit vulnerabilities for financial gain or other malicious purposes.
The repercussions of such breaches can be extensive and severe. In this blog, we’ll discuss the current threat landscape, the long-term implications of breaches with real-life examples, and strategies for mitigating these risks.
The Alarming Truth About Law Firm Breaches
- Reports of data breaches from law firms are on the rise: by mid-May this year, 21 law firms submitted reports to their state attorneys general offices, compared with 28 throughout 2023.
- Data breach class actions are also on the rise, with 40 breach-related lawsuits filed monthly so far in 2024, compared to 33 per month in 2023.
- In the U.K., law firms are increasingly susceptible to data breaches, with the main cause (39%) being internal sources and human error.
- A mere 29% of law firmsreported having undergone a comprehensive security assessment performed by an external party.
- Only 42% of law firmsreported they have an active incident response plan.
- Surprisingly, IBM’s Cost of a Data Breach Reportfound that half of breached organisations will not increase their cybersecurity budget.
The Lasting Effects of Law Firm Breaches
The fallout from cyberattacks on law firms can be long-lasting and significantly threaten the viability of a business. The impact can result in any of the below:
Client trust and reputation: A cyberattack can severely damage a law firm's reputation, eroding client trust and potentially resulting in the loss of current and prospective clients who are concerned about the security of their sensitive information.
Legal and regulatory fallout: Law firms may face significant legal and regulatory consequences following a cyberattack, including fines, sanctions, and increased scrutiny from regulatory bodies, which can further complicate business operations.
Financial losses: The financial repercussions of a cyberattack can be substantial, encompassing costs related to remediation, legal fees, potential settlements, and lost revenue due to diminished client confidence.
Operational disruption: Cyberattacks can cause major operational disruptions, hindering a law firm's ability to function effectively and deliver timely services, which can ultimately impact client satisfaction and business continuity.
Recent Examples of Legal Industry Cyber Attacks
Several high-profile law firm breaches highlight the pervasive threat posed by cyberattacks. From large multinational firms to boutique practices, no firm is immune:
- A U.S. law firm that specialises in serving high-profile financial institutions, said a system breach discovered in May 2023 exposed the personal data — possibly including sensitive information such as credit card numbers — of more than 325,000 people.
- Also in 2023, a global law firm disclosed that more than 600,000 individuals were impacted by a data breach. Over a two-week period, the attacker accessed a portion of their network, including a file share storing files related to their clients.
- In November 2021, the UK.’s largest independent conveyancing firm was the victim of a major cyber-attack that led to core business systems going offline. This was reported to have cost the firm £6.8m ($8.6m) in business. The firm reportedly invested heavily to increase its cyber security resilience following the incident.
- A security lapse at an international law firm exposed sensitive client data for more than six months.
- In 2022, a cyberattack on a U.K. top-100 firm led to a ransom demand of up to £4.75 million.
Strategies for Mitigating the Risk of a Cyberbreach
In today's threat landscape, it is essential for your law firm or legal institution to have thorough security measures in place to protect against both known and emerging threats. By investing in managed security services you can improve your security posture and lower risk of a law firm breach through:
Visibility– It goes without saying that you can’t protect what you can’t see. Solutions including XDR and MDR provide visibility across on-premises, cloud, and hybrid environments, identifying misconfigurations and vulnerabilities, while also collecting network and log data for ongoing monitoring.
Threat detection and response– Of the 31,536,000 seconds in a 365-day year, how many of them can you afford for your IT environment to go unmonitored? Not a single one. This is where a security operations centre (SOC) comes into play, constantly monitoring your systems and using curated threat intelligence, active analytics, and threat hunting to identify both known and emerging threats.
Risk reduction– Actionable intelligence enables you to prioritise and remediate the biggest risks in your environment, minimising the likelihood of a compromise occurring.
Compliance– Whether you’re needing to comply with PCI DSS 4.0, GDPR, HIPAA or a host of other local, state or national regulations, ensure you work with a security partner we collaborate with you to reach your compliance goals.
Cyber insurance– Many organisations today are urgently seeking cyber insurance but are finding it difficult to secure a policy. Insurers want proof of how their potential clients have secured their environment and strengthened their security posture. For that reason, it’s advantageous to work with an experienced cyber security partner who will be able to provide all the answers needed.
Customer demands– In addition to insurance companies enquiring about your security strategy, customers – particularly for government contracts, now regularly request information regarding an organisation’s cyber security strategy before selecting a company to work with.
Threat actors are unlikely to decrease their attacks on law firms; instead, they are expected to increase the frequency and sophistication of these attacks. Don’t wait until your firm becomes a target - make cyber security a priority now. OneAdvanced and our security partner, Fortra's Alert Logic, collaborate seamlessly to provide end-to-end managed security services, ensuring businesses are shielded from cyber threats through a blend of advanced technological measures and proactive human surveillance. Get in touch today to discuss how we can help.
Blog written by Heather Wiederhoeft, for Fortra's Alert Logic